PEMC notes growing number of contestable electricity customers

MANILA, Philippines - More energy customers have opted to choose their own power provider in the first half of the year, signaling retail competition in the market is finally gaining ground.

From only 372 by end-last year, there are now 400 contestable customers in the market who can choose their own power supplier, the Philippine Electricity Market Corp. said.

Of the total, 12 contestable customers, which have an average peak demand of 750-999 kilowatt (kw), opted to register in the retail market after the qualification threshold was lowered to 750 kw from one megawatt.

“We look forward to an expansion in market membership with the lowering of contestability threshold,” PEMC president Melinda Ocampo said.

“As we see more customers realize the benefits of retail competition, PEMC has initiated the streamlining of market processes that will ensure that barriers to entry in the retail market are removed,” she said.

Contestable customers are part of the power industry’s retail competition and open access program that officially began on June 26, 2013 through voluntary participation.

The program would then become mandatory by Dec. 26 this year for customers with peak demand. For those consuming 750 kw, deadline is set on June 26 next year.

The retail competition and open access, meant to promote affordable power prices, is mandated by Republic Act 9136 Electric Power Industry Reform Act of 2004.

Currently, customers may choose among 34 suppliers, 16 of which are retail electricity providers, 12 are in local retail, while the remaining six are classified suppliers of last resort.

A total of 25 distribution utilities and distributors in economic zones are also registered in the retail market as metering services providers that are tasked to ensure the integrity of metering data transmitted to PEMC as the central registration body.

MPower, Manila Electric Co.’s local retail provider, is currently the largest supplier in terms of volume with 229 contestable customers, PEMC data showed.